Agenda Item No. 9
CITY COUNCIL STAFF REPORT
TO: Honorable Mayor and City Council DATE: January 23, 2023 FROM: Matthew Bronson, City Manager
PREPARED BY: Greg Ray, Public Works Director/City Engineer Erin Wiggin, CIP Manager
SUBJECT: Award of Construction Contract for Measure K-14 Street Improvements for CIP 2295-15 (Portions of N. 6th, Charles Street, Manhattan Avenue, Seabright Avenue, S. 7th Street and S. 10th Street)
RECOMMENDATION
Award the contract for construction of CIP 2295-15 as part of the Measure K-14 Street Rehabilitation Program to The J.F. Will Company in the amount of $731,820.49 for the Base Bid; authorize the City Manager to sign and affirm change orders up to an aggregate of $110,000; and authorize the Mayor to execute the contract on behalf of the City.
BACKGROUND
The Council identified Street and Other Capital Improvements as one of the Major City Goals for FY 2022-23. Voters approved Measure K-14 in November 2014 which authorizes the sale of up to $48 million in bond funds for repair of residential streets. The first 14 Measure K-14 funded projects are complete and have provided comprehensive maintenance and repair of nearly 260 City blocks which represents over 65% of all local City streets. The next Measure K-14 street project is CIP 2295-15 which includes surface treatment and concrete improvements of approximately 13 blocks on portions of S. 7th Street, S. 10th Street, Seabright Avenue, Charles Street and N. 6th Street. The City hired design consultant AKA Engineering to develop the project bid documents which depict the street improvements and mandated accessibility upgrades.
Bids for CIP 2295-15 were opened on January 12, 2023. The City received five bids ranging from $731,820.49 to $918,909.58 compared with the Engineer’s Estimate of approximately $530,000.
While the bids are significantly higher than the estimate, four of the five bid prices were close to the low bid price (see Attachment 1) which affirms that the bids accurately reflect the current cost to complete the work. Staff has reviewed the bids compared to the estimate and the difference in project costs can be attributed to several factors including increased costs for labor intensive bid items, material costs and annual cost increases with the new year.
The lowest responsive and responsible bidder is the J.F. Will Company from Santa Maria with a bid of $731,820.49. Staff has completed a review of The J.F. Will Company’s, qualifications and capability to complete the project and is recommending the Council award the construction contract to them. Pending the Council’s award of construction contract, preliminary construction on this project is expected to begin in March 2023 (weather permitting). A more detailed and accurate project schedule will be determined following award of the construction contract.
Staff Report: Award of Construction Contract Measure K-14 (CIP 2295-15) Page 2 January 23, 2023
FISCAL IMPACT
This project is funded primarily with Measure K-14 funds aside from $33,000 from the General Fund for ADA improvements, $16,000 from Gas Tax funds as part of the sidewalk infill costsharing program, and $40,000 from the Water Fund for water infrastructure improvements. The total project cost includes the lowest bid plus contingency as identified above for a total of $841,820. Staff is recommending the Council award to The J.F. Will Company in the amount of $731,820.49 and authorize the City Manager to approve the construction contract and construction management change orders, if necessary, up to an additional $110,000.
ALTERNATIVES
The Council has the following alternatives to consider:
1. Award the contract for construction of CIP 2295-15 as part of the Measure K-14 Street Rehabilitation Program to The J.F. Will Company in the amount of $731,820.49 for the Base Bid; authorize the City Manager to sign and affirm change orders up to an aggregate of $110,000; and authorize the Mayor to execute the contract on behalf of the City; or
2. Delay award of the project and provide additional direction to staff; or
3. Reject all bids, modify the project, and re-advertise for bids as soon as possible.
PUBLIC NOTIFICATION
The agenda was posted in accordance with the Brown Act.
Attachments
1. Bid results
2. Map of streets included in CIP 2295-15
Bid Opening Date: Thursday, January 12, 2023 @ 2:00 p.m.
Bids for: Measure K-14 Street Rehabilitation & Repair Project_CIP 2295-15 & CIP 3003 Sealed Bids Received from:
No. Company Name & Address Total Base Bid
(Page 7)
1 JOHN MADONNA CONSTRUCTION CO., INC. P.O. Box 5310 San Luis Obispo, CA 93403 $737,600.80
2 THE J.F. WILL COMPANY, INC. 2640 Industrial Parkway, Suite 100 Santa Maria, CA 93455 $731,820.49
3 JJ FISHER CONSTRUCTION, INC. P.O. Box 2219 Nipomo, CA 93444 $781,957.00 4 S. CHAVES CONSTRUCTION INC. 11545 Los Osos Valley Road, Ste. C-3 San Luis Obispo, CA 93405 $918,909.58
5 SOUZA CONSTRUCTION P.O. Box 3810 San Luis Obispo, CA 93403 $786,540.44 6 7
*Bid results are subject to verification by engineering.
City of Grover Beach Bid Opening Results
1/12/2023 1 of 1
Project #2295-15
Project identified by City Council
7/20/2020 & 4/12/21
STREET LIST:
1. Manhattan Avenue, S. 3rd St.—S. 4th St.
2. Seabright Avenue, S. 4th St.—S. 5th St.
3. Seabright Avenue, S. 9th St.—S. 12th St.
4. South 7th Street, Rockaway Ave.—
Longbranch Ave.
5. South 7th Street, Sebright Ave.—Trouville
Ave.
6. South 7th Street, Mentone Ave.—Farroll
Road
7. South 10th Street, Rockaway Ave.—
Longbranch Ave.
8. Charles Street, Margarita to Ocean View
9. North 6th Street, Ocean View to Charles